Halliburton quitting cementing up here

[32-40win]

I dare say they probably already moved a lot of stuff south already over the last few yrs, but, guess they have had enough. This province hasn't hit bottom yet by the look of things.

https://calgaryherald.com/business/h...ons-in-alberta

[sillyak]

They have been cementing up here for 100 years and even they are calling it quits. No more big American companies are cementing here anymore, Slum stopped in 2017 and BJ earlier this year. That is how bleak our patch outlook is.

[DOGFISH]

Only the beginning boys, things are going to get worse. You can bet the USA will do everything in there power to keep Alberta down. Our manufacturing plant outside Fort Saskatchewan used to make 100s of millions a year in the oilfield. Doors are now closed due to the price of oil and natural gas. If you don't believe me just hang out at the vehicle registry , no lines ups most of the time, I used to dread going to renew vehicle registration, not an issue now..

[waldedw]

It's a sign of the tough times yet ahead, just drive through Nisku or Lloydminster and have a look around, it's going from bleak to bleaker, but fear not our infamous PM is in France to save the world with his carbon tax

[jstubbs]

Sad news to hear.

[Big Grey Wolf]

Guys we just got two pipelines, CNRL is increasing their capital budget and drilling increased number wells next year. Glass may be half full!

[calgarychef]

Originally Posted by Big Grey Wolf

Guys we just got two pipelines, CNRL is increasing their capital budget and drilling increased number wells next year. Glass may be half full!

It’s going to take a decade or more to fix this.

[omega50]

Folks may have to follow the work to stay afloat.
Ft Mac Son-in-law just finishing 6 weeks of work in Haifa. Pressure Vessel inspector.
You go where you can make a dollar. And that does not look like it is in Canada at this time.

[JB_AOL]

Not sad to see them go (although I feel bad for the employees), they were one company that was always 30% higher than any other bid, yes, including in these "lean" years.

[The Elkster]

Originally Posted by JB_AOL

Not sad to see them go (although I feel bad for the employees), they were one company that was always 30% higher than any other bid, yes, including in these "lean" years.

That doesn't sound good. If they are charging more and still shutting the doors what does that say about the companies doing the lower bidding? Are they making money because their cost structure is that much less? or are they losing their shirts on every job. I suspect its a sign the fleet is cannibalizing's itself just to stay alive. Not good for the future even if prices go up. How much experience will be lost forever after all is said and done.

[fishtank]

Originally Posted by omega50

Folks may have to follow the work to stay afloat.
Ft Mac Son-in-law just finishing 6 weeks of work in Haifa. Pressure Vessel inspector.
You go where you can make a dollar. And that does not look like it is in Canada at this time.

yep even the firechief is resigning to take a job in australia, and the way things going the doctors/nurse might be moving as well ,

[JB_AOL]

Originally Posted by The Elkster

That doesn't sound good. If they are charging more and still shutting the doors what does that say about the companies doing the lower bidding? Are they making money because their cost structure is that much less? or are they losing their shirts on every job. I suspect its a sign the fleet is cannibalizing's itself just to stay alive. Not good for the future even if prices go up. How much experience will be lost forever after all is said and done.

Not sure, but my point was, they have always been 30% higher than any other bid. Too much bloat? That's what I would assume, or to busy to care, and just threw a number out.

[tbiddy]

I deal with rigs on a daily basis around the Lloydminster/Wainwright/Provost area. Off the top of my head I don’t think I’ve seen a Haliburton cement job in the last 10 years. Mostly Magnum with Trican on the odd job. I’ve always assumed they were just too pricey for the cost structure of these type of wells. I think the biggest factor is that most companies are making more in the US so it’s easier to pull the pin here and focus on the States.

[The Elkster]

I was just wondering if maybe the other companies are underestimating the full cost of operations (maintance/depreciation/replacement) which would allow one to underbid...for awhile. If this has been going on for +10 years then its probably that Halliburton isn't that excited about that space. They certainly have the size to compete if they had any desire to be in it.

[JB_AOL]

Originally Posted by The Elkster

I was just wondering if maybe the other companies are underestimating the full cost of operations (maintance/depreciation/replacement) which would allow one to underbid...for awhile. If this has been going on for +10 years then its probably that Halliburton isn't that excited about that space. They certainly have the size to compete if they had any desire to be in it.

For the most part bids come back and they are all competitive except for one or two (usually way over bid). It used to be the case, where some companies would do a job way under cost just to either get a new client or keep the boys busy, but nowadays, that doesn't happen.

[Masterchief]

Originally Posted by JB_AOL

For the most part bids come back and they are all competitive except for one or two (usually way over bid). It used to be the case, where some companies would do a job way under cost just to either get a new client or keep the boys busy, but nowadays, that doesn't happen.

The problem is that nowadays the margins are so slim that it's impossible to price under cost just to get the work because the next project will come up and unless they are the cheapest, they won't get any more work. The service companies are making zero profit in cementing so why stick around?

[Map Maker]

https://www.google.ca/amp/s/globalne...20-budget/amp/

Cnrl put out 2020 budget and hiring.

[^v^Tinda wolf^v^]

This is not good for the employees however on the flip side someone will always be there to take their place when needed which means there will be iron to assemble 😁. If this pipeline does commence it should help get the ball rolling and the iron moving.

[BobM]

Drove Truck for Halliburton 50 years ago, sad to see them go

[DiabeticKripple]

Red Deer SLB frac probably won’t be far behind. They just shut the shop down in Red Deer, but the yard is still open. We will see where Q2 leads.

[The Elkster]

Hey DiabeticKripple do you know what the deal is with cementing logistics? Is there something in the process that makes it difficult to make money? Jobs too small or something? Just seems weird they can't make a basic service like that pay but if it amounts to small change for them I guess I can see the lack of appeal.

My initial thought was that it'd be the big guys that shut out all others in this downturn by using their diversity and company size to outcompete. I guess the good side is it may leave an opening for smaller local outfits. Lets hope

[reddeerguy2015]

Originally Posted by The Elkster

Hey DiabeticKripple do you know what the deal is with cementing logistics? Is there something in the process that makes it difficult to make money? Jobs too small or something? Just seems weird they can't make a basic service like that pay but if it amounts to small change for them I guess I can see the lack of appeal.

My initial thought was that it'd be the big guys that shut out all others in this downturn by using their diversity and company size to outcompete. I guess the good side is it may leave an opening for smaller local outfits. Lets hope

Some of the smaller cementing outfits have made out like bandits with the collapse of the big guys leaving town.

Look at Magnum as an example.

[DiabeticKripple]

Originally Posted by The Elkster

Hey DiabeticKripple do you know what the deal is with cementing logistics? Is there something in the process that makes it difficult to make money? Jobs too small or something? Just seems weird they can't make a basic service like that pay but if it amounts to small change for them I guess I can see the lack of appeal.

My initial thought was that it'd be the big guys that shut out all others in this downturn by using their diversity and company size to outcompete. I guess the good side is it may leave an opening for smaller local outfits. Lets hope

bigger companies have wayyyyy more overhead. They cant make money at these depressed prices. They can hold on so long until they just pull the pin and pull out.

Smaller companies with less overhead can do the same jobs, and make a profit. They dont usually have the same level of backing a big company does (modelling, supply chain etc) but for simple jobs they thrive.